While they have been strong in their praise of the National Housing Accord, the Property Council of Australia believes that current regulations in regards to build-to-rent are not conducive to reaching the 1.2 million homes target set by the state and federal governments.
The Council regards BTR policy as make-or-break in regards to whether the country achieves its housing targets. The drafted changes to tax settings, which includes the implementation of a 15 percent managed investment trust (MIT) withholding rate without an affordable housing mandate could lead to an additional 150,000 apartments between now and 2033.
If an affordable housing component was added to a 10 percent MIT withholding rate, it could see 10,000 affordable homes created by developers for essential workers.
The Property Council says that billions of dollars have been invested into BTR based on government statements alone. If tax settings are adjusted to the earmarked levels, Council CEO Mike Zorbas believes further funding will soon follow.
“BTR has demonstrated itself to be a superior form of rental housing, employment and quality home supply at a volume and speed potentially well in advance of other forms of housing, bar PBSA and retirement living communities.
“The BTR legislation will be the proof of that commitment for every single institutional investor in the customer-led, high amenity and speedily produced communities Australians so desperately need.”
The changes will assist in making BTR a sustainable option for developers, as it is in the US and UK. Currently, build-to-rent stock makes up just 0.2 percent of the entire market in Australia, compared to 12 percent in the United States.
Image: The Briscoe, designed by Rothelowman.
